Look on the bright side Lee ... 18 months ago you would have been daft enough to let them take the engines away without paying! At least you still have the engines and can flog them to recover your cash! Have a good xmas!
At my machine shop we require 20% down on anything up to $1,000. Anything over that we required 25% down and any parts needed to be purchased that do not fit under the 25% deposit is additional that they need to come up final machine work and assembly will be paid for at the end when it's picked up
A few years ago I had about £10,000 bodywork done on my vehicle, paid in four parts as the work went along. That's the only way to go. Both parties were entirely happy with that, they kept me informed of progress with photos, if only that we could consult on the way. Result? I got exactly what I wanted , I paid each stage immediately, and got top quality work done in good time.
I think a good plan going forward would be a stepped paying plan. You quote for strip down and estimate cost of rebuild, then the customer pays for the strip down. Next you order the parts and before fitting the customer pays for that, next they pay for the machining quote, and finally when rebuilt they pay the final bill. Or something along those lines. Hope that helps in some way? Merry Christmas and a Happy New Year to you all.
There are plenty of accounting packages that enable you to: estimate a job, send the estimate by email, ask the customer to approve the estimate electronically, send progress payment invoices by email, track the payments, track timesheets and parts costs, run project reports, run sales reports, prepare tax returns, etc.
Write into customer contract that in the event of non payment within a specified time frame. Their engine / product will be sold to recover your expenses for that said item. Have this drawn up by a legal eagle so it is an official document. By doing this you will recover most of your expenses laid out. And default payments can legally be recovered.
Make sure that if you have an outside container that your insurance is informed and that you can claim for theft or damage. This is essential if you're thinking about storing customer property in that container.
Rapid swings back and forth are what cause the dizziness issue the most for me, but the new camera has much better clarity. As for the work/engines, put on your invoices up front, something like, any engines not picked up, or paid in full, are subject to auction after 6 months, or whatever is legal in your area. And/or 50% parts up front, 50% parts mid build, labour due on completion. If you don’t pay your 50% mid stream payment…all work goes to the back of the line and won’t continue till payment received.
During my career in the motor trade, I have requested a minimum of 30% of the agreed and signed estimate, with as others have stated, the disassembly is fully paid for first. Completion date of work also to be noted.
If it quacks like a duck, walks like a duck, mate, it's a duck! You can't get a builder to do nothing until he's solvent enough to buy materials. The solvency comes from the owner that wants the work done... asking for an eye watering deposit before any reconditioning work commences, keeps the bastards kosher, and their intentions pure, merry Christmas Lee, may all your surprises be pleasant ones...
Always collect up front any materials costs and when I was in business, I was allowed by regulation, to collect 1/2 the labor. Please consider this as brotherly advice. On another note, beware of a classic scam of a friend of a customer paying for something in arrears. For example... the LR V6 you have 11K invested in. If, eventually, you need to sell it on, beware of someone answering too soon after it's been listed for sale. The original punter who owns (defaulted) the engine will send along his pal and pay less than is owed, as you'll probably discount it to move it out of your hands. My husband works at a local warehouse club called Sam's Club. A very common scam is for someone to return an expensive appliance, such as an LED Television, which by law, cannot be re-sold as new, so Sam's cuts the price and the original customer sends a relative, or friend to buy it and basically steal it for the discount. Sorry for the long post, but I wanted to share. Happy Holidays!
Distractions within the workshop are always costly. Showing a customer you're busy gives a good excuse not to piss away an hour chatting, there's work to be done. On the business side, nothing get's dropped off at our shop without a deposit. There's too much work to do, and jobs always seem to draw out longer than anticipated, so if you want to guarantee customer's coming back for their stuff, collect cash at the start. It's easy to collect for at least the parts up front and a serious customer will understand.
keep up the great work and enjoy Xmas, might be worth doing a stage payments plan so you don't get too far into the work, bit more admin but helps break the bill down for the customer, see you in 2025!
I had an engine rebuilt in my triumph cost me 7k this did include taking the old one out and putting the rebuilt one back in,the company I used billed me at every stages of 2k and took 1k to start the job, so no work till I payed the invoice at each stage. Best for both of us in my view, I would recommend doing it this way that way the risk is a lot less and can give the customer time to say hold the job till I can pay the next bill
That can work to your disadvantage just imagine your engine is nearly finished you have paid most of it, Then the engineering company goes bust . You have lost everything. Just saying.
@@Paul-pb3vq I understand your point but there are a number of contract clauses that ensure you don't lose everything and have the right to remove the material "owned" (the engine and any new parts paid for). Any administrator will be aware of these and will ensure the products are made available to the rightful owner. There are processes that need to be implemented by the supplier which unfortunately are likely to increase cost. A classic double edged sword.
@@Paul-pb3vq well you don't know much, any liquidation company will look to the owners of the engine first to get the money that is owed on it for work all ready done then you can get your property back, after that they will sell off what ever they can so the other companies that are owed money get some back but there are always losers, like the employee they only gets anything owed to them if after everyone else gets there's often nothing as the pot is empty, I know 😢
Definitely agree on the cash upfront idea I had to pay cost of parts bill when I had my Subaru engine done at pole position job was outstanding Shar explained i was totally ok with it just settled the labour cost when the job was done
I did exactly what you are proposing to do with your office. At first it was ok. Come the summer, it was horrendously hot, uncomfortable. I had to fit an a/c unit to make it bearable, then the noise from the a/c unit was a pain. Good luck and good health for 2025
Start getting a deposit which covers what you need to spend up front before you even start the engines..... that way people are financially committed to it before it happens..... Have a good Christmas all....
When I was in the service business, in my state of California, we are allowed to collect 50% up front and usually all the parts cost. This is reasonable and if a customer has a problem with it, you don't need them.
I’m in retail and just ordered a new till system and have to pay 60% deposit before they start building it. Ordered new petrol pumps last year and had to have 90% paid before fitting with 60% before they would place an order. If it’s custom work surly serious people won’t mind paying a large chunk up front
Possibly contact a solicitor and see if it is legal to add to your terms and conditions that if the final bill is not settled with 90 days of final invoice Berum Engines reserves the right to sell the engine/head/block whatever to recoup your outlay on Labour and parts. I am sure you could find customers for the k series and the V8. Merry Christmas when it comes round.
Just a well-wish for the coming year, and good holidays to you all and yours. I've enjoyed the previous year's output, and look forward to whatever you proffer us. (It keeps us from thinking/brooding on what's going on in our USA!) Thank you for all. Your plans sound terrific.
When you are suicidally depressed and your brother said he wishes your next attempt would get it write , then goes on to take all your tools you worked years to get and inheritance from you. Yeah ….
First rule of business is to remain in business, carefully examining expenses and stay consistent on prices and most importantly, look after the health of the business as it is what provides for your family and fellow workers/employees. I outlined a square foot on the floor near the entrance with blue tape. If anyone asked what that was all about, I directed them to the $ number within and explained that was the cost in dollars to operate this business, per foot. It was truly an eye-opener when people understood how much it costs to run a business and include a reasonable profit.
Only way is to do pay by progress, agree payments for each stage up front for parts, machine work assembly and balance on collection , you document the work, customer pays, they can come check in person by arrangment. No way a customer should be out the door with his finished goods owing money . Agree any changes to quoted work and any effect on payment stages before any additional work gets done.
Great vlogs Lee, enjoying content. If we don’t see ya before, Merry Christmas to you and yours and hopefully a better 2025, same too to Issac and John. Stay well.
Workshop improvements. It's great to hear that you have some plans to upgrade the workshop and to improve your work processes. The door bell is a great start. Have you considered converting the front office into a client meeting room, with a meeting table, chairs, the coffee machine and some nice images of recently completed engine projects that appear on a wall mounted TV.
Happy Christmas Lee, get yourself off for the holidays, feet up and time with your family. You too Isaac and well done to you both for the great content.
I know it's not in your affable friendly nature Lee, but it's a BUSINESS. You have to set the bar for yourself up where you expect your customers to meet you... Documenting everything is a business necessity, so there are no misunderstandings, no "but I talked to..." or "I thought it was X price" and "what about a discount ?" BS. It will save you a lot of anxiety, trouble and avoid wasting your valuable time to have it in writing, and on the website so it is clear that it's a business, period. There will always be someone who thinks otherwise, so let them take their bad business elsewhere, you don't want it or need it at this stage. You're busy enough as it is, right ?
Count your blessings! I was part of the A/V department in uni and used to video softball practices - the bloody batteries needed a back pack to cart about.
Merry Christmas and properous New Year Lee. Issac and John. Glad to hear your going to tiedy up the machine shop, it is an important part of your busuness, keep people out because you will be responsible, even if they trip up of their own accord.
Yep, if you can’t afford a 50% deposit on drop off, you ain’t got the 100% on completion which would filter out most problematic customers. Also not sure if you’re able to write into contracts something along the lines of the right to sell the engine to recover costs after a fixed period of non payment?
Great videos all year,enjoyed every one of them. And especially the real life issues with running your own business. The good with the bad. I’ve the same issue with customers that have been coming to us for years (small country Garage) everything from a chainsaw to 53seater coaches , plant machinery and agricultural machinery. Guys thinking they can just walk in anytime. Also been thinking about the booking fee upfront,not sure how that would work. The biggest problem as you say is getting paid from the odd few . Do you treat all customers the same (pay before leaving) or what. Trying to think of a sign that won’t offend people stating that all works to be paid before leaving. My father ran the business before me and it was just wrote in a book and basically pay when you want. Where do you start? Anyway keep the videos coming and all the best for Christmas and the New Year ahead Philip
Customers might be reluctant to pay upfront in case the business folds before their order is delivered. Are you able to accept payments by credit card so the customer gets some protection or is that too expensive?
Overall a good year pal! Not least having Isaac who is a keeper. Communication is key with bills and debts. Not least from the customer. Stage payments after a deposit are fair both ways and weeds out the dreamers.
Merry Xmas. Maybe get a deposit to cover all or most of the parts needed to do a job then just collect your labour and maybe a few unforseen parts as final payment. Great videos good luck.
Start taking big deposits. If anyone can't afford a deposit? Then they can't afford to pay the end bill. It's not brutal. It's business! Have a great Christmas and look forward to seeing you and Isaac in the new year. Keep it real Lee. Always good viewing mate!
Ye learnt not to let the vehicle before payment, one time a guy got me to remove his engine then sent his mate to pick it up but not pay ,but I had left the engine and accessories out ,it was a year before he came back,and again tried to take the part's before he paid, 😂😅 obviously he didn't get his part's until I got paid 😂😅 thanks for sharing, all the best to you and your loved ones, Have a Merry Christmas
Lee, thanks for all your hard work and great cinematography over the last year, have a great Christmas and New Year, have a gret week off, see you in 2025. Congratulations to you and the team on great work and a great channel. ❤ From Yorkshire.
Most of your videos uploaded seem to have a title with a problem. Landlords, customers taking you to court, not paying, etc etc. maybe there’s a way to stream line your processes. I went through similar ways with my business a few years ago. Now I have lots of processes in place through ISO9001 and 14001. It really helped me out. Not had a customer not pay or threaten not to pay in over four years now. Love the engineering you do.
Check with the solicitors (lawyers) to see if you need to be specific in them paying for parts vs labor on the bills. That way if they file bankruptcy or something where they say they have paid xxx and try to stiff you, the labor is a non negotiable fee that they have to pay. Build your profit in the parts also so you don’t get stuck holding the bag. On the older machines if you replace see if you can have the old machines rebuilt. Several of your older machines have multi purpose. Something like a boring / surfacing machine combo might be worth getting a new or factory reconditioned (yeah not cheap) with modern controls where you can monitor not babysit.
Get a great debt collector. We have them here and a decent one will not only find them, but make them pay interest as well so no cost to you. They suffer the harassment, pay out more money and all while you can get on with the job. If you can’t find him, they will.
Happy Christmas Lee, I know very little about engines, I enjoy how you run your business and the problems. I admit that I just seek out the thumbnail bits but those are the bits I enjoy. I wish you would make them easier to fins but I know why you don't.
No one should be allowed unaccompanied in your business. YOU HAVE A LIABILITY UNDER THE HEALTH AND SAFETY ACT FOR ANYONE YOU KNOWINGLY IS IN YOUR AREA. Be firm. No ifs or buts. Keep people in an area designated by you after they contact you first to obtain access.
Who spends that sort off money on a standard rebuild? 10000 pound is about 20k AUD plus removal and installation big bucks hope the vehicle it's worth it
I think, apart from long standing reliable customers, you should institute a deposit scheme. Like, 20% + cost of parts before you start a job, then balance paid on completion.
Definitely once the quote has been done as you have worked out the parts prices at least get them paid before commencing the work, at least then you know they are serious about having the work done and then if they mess about with the payment it’s only the labour and you haven’t also forked out for the parts as well, still a pain but less of a headache.
There are specific boring and facing machines for this type of work, I'd have to look at a few channels, Dan Powell has nice stuff, Jim's Automotive, Brand, Steve Morris, etc. for some examples to watch.
Not sure about the UK, but in many countries car workshops routinely require 50% upfront for jobs that require serious investments from the workshop in parts/labor. You can always make exceptions for customers with a well established reputation, but I don't see a lot of downsides to making this a policy for you. Maybe split up to 10% upfront, once parts are ordered and in, but before building 50% and 30 days after after final invoice storage fees start? Just a suggestion. You have seen that being more strict on your customers has not had a negative effect on your business overall and I get the impression it has had a positive impact on your mental health as well. Business will be business and there will always be problems, but let them be the problems that matter to your actual business and not to people with ambitions that are larger than their wallets.
Re wobbly cam, attach a tripod and carry it. The inertia of the tripod makes it very stable in the pitch and roll directions leaving you free to yaw (pan left-right)
The dynamic range of the new camera isn’t the best, not sure if it can be tweaked in the settings, but the lights and bright areas are over exposed and the dark areas under exposed 🤷♂️
I would go the parts up front !! U will stop people not paying when they want. At least if they go ghost on you your not out the parts money just labor and that’s easier to deal with .Thats my 2 cents and that’s what I do. I got sick of it people not showing up and I can’t sell there engine unless I go to court and get a judgment and wait for it to be abandoned property. My lawyer also said if I put on my invoices they sign before work is done saying late charges and after so much time it’s considered abandoned then I can sell . But I decided to do the 50% down or parts . Sorry for the long post
I Always have either a Non-Refundable Deposit (hourly rate) at a Minimum. I can always send the parts back for my money, but I will not go without Some sort of payment. Different possibly for me as im an I.T. and builder of systems and networks? Not sure how auto parts and returns are is all. Seriously mate... a Deposit is a Must when it comes to Anything, for me Anything over what I am willing to loose will have a Mandatory Deposit. Been in this situation... Once. As they say, "Fool me once Shame on You, fool me twice shame on me"
Can't return installed parts, so get paid at least for them. Labor can be documented as a loss for tax purposes. It's unreasonable to expect a businessman to pay income taxes on his labor without claiming losses of same.
your camera seems to be jumping a bit but not bad just let Issac hold it ,have a Merry Christmas to you and your family and John and Issac see you in the new year (you will be in that workshop over Christmas you can not keep away HO HO HO ) take care have a good one.
For parts you buy-in, don't fit them until the customer has paid your cost. Your labour rates should be high enough to cover the (occasional) remaining bad debts.
Seriously..You should change contract agreements. F.e. that above x amount of work a 50% downpayment has to be made. Also if customer does not pay remainder prior to pick up or does not respond to calls/emails/registered letter, etc. within 12 months after first communication that the work is completed, the engine will become your property, be sold as if desired. If customer does respond within 24 months he is entitled to get remainder of the selling price of the engine (if sold) minus your costs. Have it checked by legal consult.
Was only thinking the other day that you should bin the E30 and drive a Cosworth for your track days, surely that would bring you in double the amount of work over a year with most being race tuned motors for our oval badged cars
Make an estimate and set up the way you expect payments to be none. 1/3 rd. down to start the job another 1/3-part way through and the last amount upon completion. That way you are not stuck shelling out the money for all the parts.
Lee, the motion sickness is not the cameras fault. What you need to do is really slow down when your moving it and to stop moving it around like a mad man!! LOL. The human eye cannot take in the information as fast as you think it can and thats how you are creating the motion sickness. Love your show. Keep it up!
The ancient Egyptians used CNC technology to mass produce vases with very exact tolerances, its just takes patience to learn how the new machine works, or you hire a part time machinist to run that machine. You could start by making Barum Engines name plates out of billet aluminium.
The one thing I have learned in business is the cost of time chasing money, about 10 years ago I got done for about 6k I can tell you this hurts it was an Ltd company and yes they went bang and I lost 6k since this I change my payment terms to 35% deposit & final balance upfront two weeks before the event/show was hard to do but always worked never had hassle again. you need a non-refundable deposit upfront to book the engine /workshop time slot & then full payment before an engine build, and then you're covered.
Surely you could claim the engines as payment and sell them to claim part payment. Otherwise claim a credit card prepayment which you don’t cash in until it’s finished. At least you have the fallback on his account. Some car hire people do that as a damage deposit.
Great video, make them as and when you like or when something interesting pops up. This is not a criticism only my observations, have a play at the camera settings, I can see the background is not as clear and the overall picture is not as sharp and its darker, go back and look at videos you did 2 months ago, they are crystal clear, sharp and background is clear. I wish everyone at Barum engines a very happy christmas
This is only the tip of the iceberg, Just think why the customer did not just fix it in the Dealer ,Big Warning sign 😮 Probably he has found a replacement engine fitted it and sold as part x or taken the hit and traded in with the dealer Extending the finance, Hopefully you will get a Response or contact the Dealer, check the logbook status if a new one has been issued if you have the vehicle Details Lee , Good Luck 🤞 This is only Starting im Afraid 🥵
Look on the bright side Lee ... 18 months ago you would have been daft enough to let them take the engines away without paying! At least you still have the engines and can flog them to recover your cash! Have a good xmas!
At my machine shop we require 20% down on anything up to $1,000. Anything over that we required 25% down and any parts needed to be purchased that do not fit under the 25% deposit is additional that they need to come up final machine work and assembly will be paid for at the end when it's picked up
A few years ago I had about £10,000 bodywork done on my vehicle, paid in four parts as the work went along. That's the only way to go. Both parties were entirely happy with that, they kept me informed of progress with photos, if only that we could consult on the way. Result? I got exactly what I wanted , I paid each stage immediately, and got top quality work done in good time.
I think a good plan going forward would be a stepped paying plan. You quote for strip down and estimate cost of rebuild, then the customer pays for the strip down. Next you order the parts and before fitting the customer pays for that, next they pay for the machining quote, and finally when rebuilt they pay the final bill.
Or something along those lines. Hope that helps in some way? Merry Christmas and a Happy New Year to you all.
There are plenty of accounting packages that enable you to: estimate a job, send the estimate by email, ask the customer to approve the estimate electronically, send progress payment invoices by email, track the payments, track timesheets and parts costs, run project reports, run sales reports, prepare tax returns, etc.
Write into customer contract that in the event of non payment within a specified time frame. Their engine / product will be sold to recover your expenses for that said item. Have this drawn up by a legal eagle so it is an official document. By doing this you will recover most of your expenses laid out. And default payments can legally be recovered.
Make sure that if you have an outside container that your insurance is informed and that you can claim for theft or damage. This is essential if you're thinking about storing customer property in that container.
Agreed. And make it impossible to lift ! The organised gangs from you know where, have plenty of heavy lifting gear 😐
Rapid swings back and forth are what cause the dizziness issue the most for me, but the new camera has much better clarity.
As for the work/engines, put on your invoices up front, something like, any engines not picked up, or paid in full, are subject to auction after 6 months, or whatever is legal in your area.
And/or 50% parts up front, 50% parts mid build, labour due on completion. If you don’t pay your 50% mid stream payment…all work goes to the back of the line and won’t continue till payment received.
During my career in the motor trade, I have requested a minimum of 30% of the agreed and signed estimate, with as others have stated, the disassembly is fully paid for first. Completion date of work also to be noted.
If it quacks like a duck, walks like a duck, mate, it's a duck! You can't get a builder to do nothing until he's solvent enough to buy materials. The solvency comes from the owner that wants the work done... asking for an eye watering deposit before any reconditioning work commences, keeps the bastards kosher, and their intentions pure, merry Christmas Lee, may all your surprises be pleasant ones...
Always collect up front any materials costs and when I was in business, I was allowed by regulation, to collect 1/2 the labor. Please consider this as brotherly advice. On another note, beware of a classic scam of a friend of a customer paying for something in arrears. For example... the LR V6 you have 11K invested in. If, eventually, you need to sell it on, beware of someone answering too soon after it's been listed for sale. The original punter who owns (defaulted) the engine will send along his pal and pay less than is owed, as you'll probably discount it to move it out of your hands. My husband works at a local warehouse club called Sam's Club. A very common scam is for someone to return an expensive appliance, such as an LED Television, which by law, cannot be re-sold as new, so Sam's cuts the price and the original customer sends a relative, or friend to buy it and basically steal it for the discount. Sorry for the long post, but I wanted to share. Happy Holidays!
Distractions within the workshop are always costly. Showing a customer you're busy gives a good excuse not to piss away an hour chatting, there's work to be done. On the business side, nothing get's dropped off at our shop without a deposit. There's too much work to do, and jobs always seem to draw out longer than anticipated, so if you want to guarantee customer's coming back for their stuff, collect cash at the start. It's easy to collect for at least the parts up front and a serious customer will understand.
keep up the great work and enjoy Xmas, might be worth doing a stage payments plan so you don't get too far into the work, bit more admin but helps break the bill down for the customer, see you in 2025!
I had an engine rebuilt in my triumph cost me 7k this did include taking the old one out and putting the rebuilt one back in,the company I used billed me at every stages of 2k and took 1k to start the job, so no work till I payed the invoice at each stage. Best for both of us in my view, I would recommend doing it this way that way the risk is a lot less and can give the customer time to say hold the job till I can pay the next bill
That can work to your disadvantage just imagine your engine is nearly finished you have paid most of it,
Then the engineering company goes bust .
You have lost everything.
Just saying.
@@Paul-pb3vq I understand your point but there are a number of contract clauses that ensure you don't lose everything and have the right to remove the material "owned" (the engine and any new parts paid for). Any administrator will be aware of these and will ensure the products are made available to the rightful owner. There are processes that need to be implemented by the supplier which unfortunately are likely to increase cost. A classic double edged sword.
@@Paul-pb3vq well you don't know much, any liquidation company will look to the owners of the engine first to get the money that is owed on it for work all ready done then you can get your property back, after that they will sell off what ever they can so the other companies that are owed money get some back but there are always losers, like the employee they only gets anything owed to them if after everyone else gets there's often nothing as the pot is empty, I know 😢
Definitely agree on the cash upfront idea I had to pay cost of parts bill when I had my Subaru engine done at pole position job was outstanding Shar explained i was totally ok with it just settled the labour cost when the job was done
Sue these people. Unlikely they are going to be multiple long term customers. Having bailiffs getting access to you home will probably shake them up .
I did exactly what you are proposing to do with your office. At first it was ok. Come the summer, it was horrendously hot, uncomfortable. I had to fit an a/c unit to make it bearable, then the noise from the a/c unit was a pain. Good luck and good health for 2025
Mini-splits are usually very quiet, plus, you don't need to cut a big hole into a wall you don't own!
Well done Lee and a Merry Christmas 👍🍷
Thanks Lee -- have a great Christmas yourself with the family.
Start getting a deposit which covers what you need to spend up front before you even start the engines..... that way people are financially committed to it before it happens.....
Have a good Christmas all....
Uncollectible debt is frequently the death of many small businesses, be cautious.
When I was in the service business, in my state of California, we are allowed to collect 50% up front and usually all the parts cost. This is reasonable and if a customer has a problem with it, you don't need them.
Merry Christmas guys! Love the channel and looking forward to 2025!
I’m in retail and just ordered a new till system and have to pay 60% deposit before they start building it. Ordered new petrol pumps last year and had to have 90% paid before fitting with 60% before they would place an order. If it’s custom work surly serious people won’t mind paying a large chunk up front
Possibly contact a solicitor and see if it is legal to add to your terms and conditions that if the final bill is not settled with 90 days of final invoice Berum Engines reserves the right to sell the engine/head/block whatever to recoup your outlay on Labour and parts.
I am sure you could find customers for the k series and the V8.
Merry Christmas when it comes round.
Just a well-wish for the coming year, and good holidays to you all and yours. I've enjoyed the previous year's output, and look forward to whatever you proffer us. (It keeps us from thinking/brooding on what's going on in our USA!) Thank you for all. Your plans sound terrific.
It's worse when family does that
Family and so called friends??
When you are suicidally depressed and your brother said he wishes your next attempt would get it write , then goes on to take all your tools you worked years to get and inheritance from you. Yeah ….
First rule of business is to remain in business, carefully examining expenses and stay consistent on prices and most importantly, look after the health of the business as it is what provides for your family and fellow workers/employees. I outlined a square foot on the floor near the entrance with blue tape. If anyone asked what that was all about, I directed them to the $ number within and explained that was the cost in dollars to operate this business, per foot. It was truly an eye-opener when people understood how much it costs to run a business and include a reasonable profit.
Only way is to do pay by progress, agree payments for each stage up front for parts, machine work assembly and balance on collection , you document the work, customer pays, they can come check in person by arrangment. No way a customer should be out the door with his finished goods owing money . Agree any changes to quoted work and any effect on payment stages before any additional work gets done.
Great vlogs Lee, enjoying content. If we don’t see ya before, Merry Christmas to you and yours and hopefully a better 2025, same too to Issac and John. Stay well.
Workshop improvements. It's great to hear that you have some plans to upgrade the workshop and to improve your work processes. The door bell is a great start. Have you considered converting the front office into a client meeting room, with a meeting table, chairs, the coffee machine and some nice images of recently completed engine projects that appear on a wall mounted TV.
Happy Christmas Lee, get yourself off for the holidays, feet up and time with your family. You too Isaac and well done to you both for the great content.
I know it's not in your affable friendly nature Lee, but it's a BUSINESS. You have to set the bar for yourself up where you expect your customers to meet you... Documenting everything is a business necessity, so there are no misunderstandings, no "but I talked to..." or "I thought it was X price" and "what about a discount ?" BS.
It will save you a lot of anxiety, trouble and avoid wasting your valuable time to have it in writing, and on the website so it is clear that it's a business, period. There will always be someone who thinks otherwise, so let them take their bad business elsewhere, you don't want it or need it at this stage. You're busy enough as it is, right ?
Nice vid, hope you and your family have a super Christmas and a great New Year. Have a nice break and chill out!
Count your blessings! I was part of the A/V department in uni and used to video softball practices - the bloody batteries needed a back pack to cart about.
Merry Christmas and properous New Year Lee. Issac and John. Glad to hear your going to tiedy up the machine shop, it is an important part of your busuness, keep people out because you will be responsible, even if they trip up of their own accord.
Happy Christmas Lee and all at barum engines
Yep, if you can’t afford a 50% deposit on drop off, you ain’t got the 100% on completion which would filter out most problematic customers. Also not sure if you’re able to write into contracts something along the lines of the right to sell the engine to recover costs after a fixed period of non payment?
Great videos all year,enjoyed every one of them.
And especially the real life issues with running your own business. The good with the bad.
I’ve the same issue with customers that have been coming to us for years (small country Garage) everything from a chainsaw to 53seater coaches , plant machinery and agricultural machinery.
Guys thinking they can just walk in anytime.
Also been thinking about the booking fee upfront,not sure how that would work.
The biggest problem as you say is getting paid from the odd few .
Do you treat all customers the same (pay before leaving) or what.
Trying to think of a sign that won’t offend people stating that all works to be paid before leaving.
My father ran the business before me and it was just wrote in a book and basically pay when you want.
Where do you start?
Anyway keep the videos coming and all the best for Christmas and the New Year ahead
Philip
I wish you guys a VERY merry Christmas, and a very nice party for celebrating New Years Eve!!!!
Greetings from the Netherlands.
Customers might be reluctant to pay upfront in case the business folds before their order is delivered. Are you able to accept payments by credit card so the customer gets some protection or is that too expensive?
50% labor is customary, plus 100% on special order parts.
Not too expensive but with credit card the payer has too many rights which Barum would find expensive and difficult to fight.
Overall a good year pal! Not least having Isaac who is a keeper.
Communication is key with bills and debts. Not least from the customer. Stage payments after a deposit are fair both ways and weeds out the dreamers.
PS: Auction off that unpaid engine, I'll start the bidding at £200. 😁
Merry Xmas. Maybe get a deposit to cover all or most of the parts needed to do a job then just collect your labour and maybe a few unforseen parts as final payment. Great videos good luck.
Start taking big deposits. If anyone can't afford a deposit? Then they can't afford to pay the end bill. It's not brutal. It's business! Have a great Christmas and look forward to seeing you and Isaac in the new year. Keep it real Lee. Always good viewing mate!
Ye learnt not to let the vehicle before payment, one time a guy got me to remove his engine then sent his mate to pick it up but not pay ,but I had left the engine and accessories out ,it was a year before he came back,and again tried to take the part's before he paid, 😂😅 obviously he didn't get his part's until I got paid 😂😅 thanks for sharing, all the best to you and your loved ones, Have a Merry Christmas
Lee, thanks for all your hard work and great cinematography over the last year, have a great Christmas and New Year, have a gret week off, see you in 2025. Congratulations to you and the team on great work and a great channel. ❤ From Yorkshire.
Stage payments are one of the best ways. Stage 1, strip, clean and assess. Stage 2 machining trial build and parts. Stage 3 final build and materials.
Merry Christmas Barum engines.
Hope you and Issac have a good Christmas and a great break 👍🥸
I'm usually a complainer but you have much improved on how you come across
Do stage payments we do that on the boats we build , brake it down to 4 stage payments with the final payment when the is ready to ship.
Most of your videos uploaded seem to have a title with a problem. Landlords, customers taking you to court, not paying, etc etc. maybe there’s a way to stream line your processes. I went through similar ways with my business a few years ago. Now I have lots of processes in place through ISO9001 and 14001. It really helped me out. Not had a customer not pay or threaten not to pay in over four years now. Love the engineering you do.
Have a wonderful Xmas and new year ,look forward to seeing the new videos next year 👍👍👍👍
People who had money a few years ago are going skint and unfortunately are walking away from these engine rebuilds.
Happy Christmas Lads
Check with the solicitors (lawyers) to see if you need to be specific in them paying for parts vs labor on the bills. That way if they file bankruptcy or something where they say they have paid xxx and try to stiff you, the labor is a non negotiable fee that they have to pay. Build your profit in the parts also so you don’t get stuck holding the bag.
On the older machines if you replace see if you can have the old machines rebuilt. Several of your older machines have multi purpose. Something like a boring / surfacing machine combo might be worth getting a new or factory reconditioned (yeah not cheap) with modern controls where you can monitor not babysit.
Get a great debt collector. We have them here and a decent one will not only find them, but make them pay interest as well so no cost to you. They suffer the harassment, pay out more money and all while you can get on with the job. If you can’t find him, they will.
Happy Christmas Lee, I know very little about engines, I enjoy how you run your business and the problems. I admit that I just seek out the thumbnail bits but those are the bits I enjoy. I wish you would make them easier to fins but I know why you don't.
No one should be allowed unaccompanied in your business. YOU HAVE A LIABILITY UNDER THE HEALTH AND SAFETY ACT FOR ANYONE YOU KNOWINGLY IS IN YOUR AREA. Be firm. No ifs or buts. Keep people in an area designated by you after they contact you first to obtain access.
Merry Christmas and a happy New Year Lee, Issic and your families.
Enjoy the videos, Have a good Christmas, You all and your family's. Danny
Who spends that sort off money on a standard rebuild? 10000 pound is about 20k AUD plus removal and installation big bucks hope the vehicle it's worth it
I think, apart from long standing reliable customers, you should institute a deposit scheme. Like, 20% + cost of parts before you start a job, then balance paid on completion.
Great idea to buy some modern equipment
Give them a weeks warning that if they don't pay in full within that time they will both be sold to recover costs
Definitely once the quote has been done as you have worked out the parts prices at least get them paid before commencing the work, at least then you know they are serious about having the work done and then if they mess about with the payment it’s only the labour and you haven’t also forked out for the parts as well, still a pain but less of a headache.
There are specific boring and facing machines for this type of work, I'd have to look at a few channels, Dan Powell has nice stuff, Jim's Automotive, Brand, Steve Morris, etc. for some examples to watch.
Its always the few that spoil it for the many.
Merry Christmas you guys. You deserve a well earned holiday rest, enjoy!
It's sad days when you are having to get money up front before working on engines.
What have we learnt from the most recent 2x non payments??
That a new camera will solve all these problems lol
Not sure about the UK, but in many countries car workshops routinely require 50% upfront for jobs that require serious investments from the workshop in parts/labor. You can always make exceptions for customers with a well established reputation, but I don't see a lot of downsides to making this a policy for you. Maybe split up to 10% upfront, once parts are ordered and in, but before building 50% and 30 days after after final invoice storage fees start? Just a suggestion. You have seen that being more strict on your customers has not had a negative effect on your business overall and I get the impression it has had a positive impact on your mental health as well.
Business will be business and there will always be problems, but let them be the problems that matter to your actual business and not to people with ambitions that are larger than their wallets.
Make sure you get the good biscuits.
Re wobbly cam, attach a tripod and carry it. The inertia of the tripod makes it very stable in the pitch and roll directions leaving you free to yaw (pan left-right)
The dynamic range of the new camera isn’t the best, not sure if it can be tweaked in the settings, but the lights and bright areas are over exposed and the dark areas under exposed 🤷♂️
It looks more in focus today the contrast needs turning up or maby better lighting as it looks gloomy unless it's my old eyes 🤣🤣🤣
I would go the parts up front !! U will stop people not paying when they want. At least if they go ghost on you your not out the parts money just labor and that’s easier to deal with .Thats my 2 cents and that’s what I do. I got sick of it people not showing up and I can’t sell there engine unless I go to court and get a judgment and wait for it to be abandoned property. My lawyer also said if I put on my invoices they sign before work is done saying late charges and after so much time it’s considered abandoned then I can sell . But I decided to do the 50% down or parts . Sorry for the long post
I Always have either a Non-Refundable Deposit (hourly rate) at a Minimum. I can always send the parts back for my money, but I will not go without Some sort of payment. Different possibly for me as im an I.T. and builder of systems and networks? Not sure how auto parts and returns are is all. Seriously mate... a Deposit is a Must when it comes to Anything, for me Anything over what I am willing to loose will have a Mandatory Deposit. Been in this situation... Once.
As they say, "Fool me once Shame on You, fool me twice shame on me"
Can't return installed parts, so get paid at least for them. Labor can be documented as a loss for tax purposes. It's unreasonable to expect a businessman to pay income taxes on his labor without claiming losses of same.
your camera seems to be jumping a bit but not bad just let Issac hold it ,have a Merry Christmas to you and your family and John and Issac see you in the new year (you will be in that workshop over Christmas you can not keep away HO HO HO ) take care have a good one.
hate to say it but as an ex builder, deposits and payment schedules are the only way to go. Merry Christmas!
Because builders are always honest and never run off with the money and don't do the job if you pay them upfront...
For parts you buy-in, don't fit them until the customer has paid your cost. Your labour rates should be high enough to cover the (occasional) remaining bad debts.
People doing a Lord Lucan on you this year, just disappearing on you 😂😂
Seriously..You should change contract agreements. F.e. that above x amount of work a 50% downpayment has to be made. Also if customer does not pay remainder prior to pick up or does not respond to calls/emails/registered letter, etc. within 12 months after first communication that the work is completed, the engine will become your property, be sold as if desired. If customer does respond within 24 months he is entitled to get remainder of the selling price of the engine (if sold) minus your costs. Have it checked by legal consult.
Was only thinking the other day that you should bin the E30 and drive a Cosworth for your track days, surely that would bring you in double the amount of work over a year with most being race tuned motors for our oval badged cars
The E30 track car is a good way to attract a new group of customers to Barum. Cossies, Subarus and BMW owners.
Make an estimate and set up the way you expect payments to be none. 1/3 rd. down to start the job another 1/3-part way through and the last amount upon completion. That way you are not stuck shelling out the money for all the parts.
have a great xmas and new year guys, dont eat too many sprouts
easy Lee ask for a 50% deposit up front before you start....thats why i closed my business sick of people think i was a bank for personal loans
Lee, the motion sickness is not the cameras fault. What you need to do is really slow down when your moving it and to stop moving it around like a mad man!! LOL.
The human eye cannot take in the information as fast as you think it can and thats how you are creating the motion sickness. Love your show. Keep it up!
Like you Lee ‘25 needs to be lessons in customer management before it drives me insane or broke which ever.
You do not need a cnc to skim heads and you will have to learn how to program it which is a big learning curve
However a CNC mill will allow you to start to do other kinds of work.
The ancient Egyptians used CNC technology to mass produce vases with very exact tolerances, its just takes patience to learn how the new machine works, or you hire a part time machinist to run that machine. You could start by making Barum Engines name plates out of billet aluminium.
Merry Xmas to all.
The one thing I have learned in business is the cost of time chasing money, about 10 years ago I got done for about 6k I can tell you this hurts it was an Ltd company and yes they went bang and I lost 6k since this I change my payment terms to 35% deposit & final balance upfront two weeks before the event/show was hard to do but always worked never had hassle again. you need a non-refundable deposit upfront to book the engine /workshop time slot & then full payment before an engine build, and then you're covered.
Take it easy Captain edit 😂
Surely you could claim the engines as payment and sell them to claim part payment. Otherwise claim a credit card prepayment which you don’t cash in until it’s finished. At least you have the fallback on his account. Some car hire people do that as a damage deposit.
Good watching you lads but the sound has gone a bit poo with new set up methinks, or have I been grinding/fabin too much without my proper ppe😳❤️
Great video, make them as and when you like or when something interesting pops up. This is not a criticism only my observations, have a play at the camera settings, I can see the background is not as clear and the overall picture is not as sharp and its darker, go back and look at videos you did 2 months ago, they are crystal clear, sharp and background is clear. I wish everyone at Barum engines a very happy christmas
At booking in, at least get the parts covered up front, you can always swallow your labour but parts is difficult.
Happy Christmas
This is only the tip of the iceberg, Just think why the customer did not just fix it in the Dealer ,Big Warning sign 😮 Probably he has found a replacement engine fitted it and sold as part x or taken the hit and traded in with the dealer Extending the finance, Hopefully you will get a Response or contact the Dealer, check the logbook status if a new one has been issued if you have the vehicle Details Lee , Good Luck 🤞 This is only Starting im Afraid 🥵
Merry Christmas and a Happy New Year to you all, see you in 2025
That's the camera I would have recommended if asked, I would have recommended a different microphone for it though.
You have to be more Toydarian. No Republic Credits!
Do you think that you can close the sliding door to the machine shop sometime in 2025?